Case Studies - Christie + Co

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Mercure Hotel Bielefeld City Sale of the Best Western Macrander Hotel in Offenbach, close to Frankfurt am Main Christie + Co provided advice to a foreign investor in the course of their acquisition of the Best Western Macrander Hotel in Offenbach am Main. The hotel, until then owned by a fund managed by WestFonds, offers 127 bedrooms and seven conference rooms and provides excellent transport connections. It is operated on the basis of a lease contract by Macrander Hotels. Sale of the Ibis Hotel Aachen Marschiertor, North Rhine- Westphalia On behalf of the owner, DS-Fonds Nr. 19 Hotel Ibis Aachen Herbert Sacksteder KG, a subsidiary of Dr. Peters Fondsverwaltung GmbH & Co. KG, Christie + Co sold the 110-bedroom Ibis Hotel Aachen Marschiertor to an opportunistic fund. The buyers operate the business via one of their subsidiaries as a franchisee of Accor Hotellerie Deutschland GmbH under the Ibis brand. Markus Beike Managing Director, Germany 13
International Business Outlook 2012 Middle East and North Africa Dubai Office Christie + Co broadened its network and international focus with the opening of its Dubai office in March 2011. Building on its existing relationships in the Middle East and North Africa (MENA) and combining these with a wealth of knowledge and experience from a team positioned in the region, the initial focus for the Dubai office is to provide consultancy services to companies based in, or wishing to enter, the MENA countries. After a successful launch event at the prestigious Burj Khalifa, the first challenges of operating in the market were presented in the form of significant political upheaval in Egypt, Libya and Tunisia, and civil unrest in Bahrain and Syria — the so-called ‘Arab Spring’. Whilst these events understandably impacted hotel performance and halted investment decisions in those locations in the immediate term, they underlined the strength and stability of other countries in the region, notably the United Arab Emirates, where rebounding hotel performance in the second half of the year was a welcome surprise to hotel operators. GCC focus during 2011 Our focus during 2011, particularly after the events of the Arab Spring, was maintained on the opportunities within the markets of the Gulf Co-operation Council: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. Qatar has the highest per capita GDP and the fastest growing economy in the region. It is currently the focus of new activity as the authorities plan how to meet the requirements for hosting the 2022 World Cup. From significant 14 infrastructure down to the last hotel room, there is a lot to do in the next ten years. With 10,000 hotel rooms currently and a further 6,700 in the pipeline, there is still a preoccupation with upscale hotel development, but to meet the needs of a changing visitor profile this will quickly morph into the diversified product of a more mature hotel market, and even more new hotel announcements. During 2011 Christie + Co had an insight into the strategic development issues facing Qatar when we advised on the development of waterfront hotels in the up-and-coming Lusail district. Oman continued to see many of its larger tourism projects on hold during 2011, largely due to financing issues. Although the country has yet to complete any of the government approved projects with Integrated Tourism Complex (ITC) status, this period has allowed a re-planning and re-prioritisation of targets within the larger projects. This could better align launch dates with the completion of the new terminal at Muscat International Airport, growth of Oman Air and improved direct air access for the tourism market. Hotel development activity is progressing in Salalah, where the international airport is also undergoing expansion. During 2011 Christie + Co provided development advice for a resort on an isolated beachfront site outside Muscat. The United Arab Emirates is dominated by the existing and future hotel supply in the key commercial centres of Dubai and Abu Dhabi. Whilst economic growth has been restrained in 2011 it is still one of the largest economies in the region, behind Saudi Arabia and Iran. Concern with the future hotel supply-demand relationship has shifted from Dubai to Abu Dhabi during the year with hotels cautious about their operating environment and hesitant to make long-term projections. Whilst Dubai took immediate advantage of the fallout of the leisure and MICE (meetings, incentives, conferences, exhibitions) markets generated by the Arab Spring, much of Abu Dhabi’s hotel supply and related infrastructure is still under development. There has been a rethink on some of the larger island projects, with initial plans being redrawn and much longer completion dates being agreed. In 2011 Christie + Co advised on strategic redevelopment options for Hilton hotels in Abu Dhabi and Al Ain, the development of a lifestyle hotel in Dubai, and the renegotiation of the contract terms for what would become the Radisson Royal Hotel in Dubai. Outlook for 2012 Into 2012, we expect hotel development activity to be focused on Qatar and the completion of hotel projects under development in the United Arab Emirates. Older properties across the Gulf countries will see a number of closures and major renovations to keep pace with the quality of new supply. Saudi Arabia will be a growth market, not only in its unique religious tourism market of Mecca, where hotel performance continues to be strong despite significant additions to supply, but in secondary cities and around commercial hubs. Oman will see major tourism projects move forward during the year, evidenced by a revival of activity towards the end of 2011.
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Case Studies - Christie + Co

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